Finance Ministry's Budget Cut by Rp8.9tn, Sri Mulyani: Staff Pay Not Affected

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February 13, 2025 | 07:30 pm

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati has confirmed that the budget cut in line with President Prabowo Subianto's Instruction have no impact on the salaries of Ministry of Finance employees and the target state revenues.

"The total efficiency measures undertaken for the Ministry of Finance in accordance with Presidential Instruction Number 1 of 2025, involved further savings of Rp8.9 trillion," said Sri Mulyani at a meeting with the House of Representatives' Commission XI on Thursday, February 13, 2025.

The state treasurer conveyed this information when presenting the reconstructed budget of the Ministry of Finance to House Commission XI today. Following the reconstruction, the Ministry of Finance's budget was cut by Rp8.9 trillion.

Originally, the Ministry of Finance's budget was set for Rp53 trillion. With the Rp8.9 trillion cut, the ministry's budget for 2025 is now Rp44.2 trillion. In order to optimize spending, Sri Mulyani implemented several principles and strategies in accordance with the Presidential Instruction.

"Efficiency measures were not applied to salary expenditures, but a thorough study was conducted to achieve efficiency in goods and capital expenditures," she said.

Expenses that were cut included office supplies, seminars, studies, ceremonial events, and celebrations. The Ministry of Finance also plays a crucial role in collecting state revenues. Therefore, the budget for activities that contribute to state revenue and patrols is expected not to be affected.

"We continue to support those, but they are still calculated with great precision and efficiency," she added.

Sri also re-evaluated systems that are currently in place to support revenue collection, such as the Indonesia National Single Window (INSW) and the core tax administration system (Coretax).

"We also evaluate systems that are currently functioning, whether it's Coretax, the INSW system, CEISA, IT, or the Ministry of Finance," said Sri Mulyani. "All of these are still supported, but we also conduct detailed and precise studies of their budget requirements."

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